SINGAPORE (THE BUSINESS TIMES) - CapitaLand Development (CLD), the development arm of CapitaLand Group, has won the bids for two prime residential sites in China for a total price of 3.5 billion yuan (S$748 million).

CLD plans to build on these sites 1,581 homes catering to first-time home buyers and upgraders, bringing its residential pipeline under development in China to 19,139 units, CapitaLand said in a statement on Monday (April 4).

CLD chief executive Jason Leow noted that China is one of the three core markets for CLD, adding that he expected the Chinese government's pledge on policy easing to put China's real estate sector on the path to recovery.

He said: "We are optimistic that the decisive moves taken by the authorities to reduce speculation will promote the healthy and sustained development of China's housing market in the long term."

The sites are located in Wuhan and Chengdu. The Wuhan site, clinched at 2.3 billion yuan, is located in the central business district and measures 45,709 sq m in site area, with a gross floor area (GFA) of 146,000 sq m.

The Chengdu site, secured at 1.2 billion yuan, is located in the Chenghua district and covers an area of 29,382 sq m, with a GFA of 73,453 sq m.

CapitaLand noted that home buyer sentiment has been improving in both cities, with housing transaction volume in Wuhan rising by 50 per cent month on month in March, and the sales of new homes in Chengdu showing a year-on-year increase for the period from January to February.

Construction of the projects on both sites will begin this year, the company said.

Shares of CapitaLand Investment closed up five cents, or 1.3 per cent, at $4.04 on Friday.